WELCOME TO DEEP YELLOW LIMITED
ABN: 97 006 391 948
Deep Yellow Limited (DYL) has rapidly
established itself over the past 30 months as a significant
member of the international uranium industry being a
well-funded prominent explorer in Australia and Namibia.
Nuclear energy (and uranium as fuel) is
rapidly gaining ground as an alternate base load source of
electricity as the effects of fossil fuel burning and its
contribution to global warming is being recognised. This
realisation and looming shortages of uranium has led to a
remarkable correction in its price, which has seen the price
rise from US$50 15 months ago to a top of US$135 per pound,
falling back to US$75. DYL expects that the
recent rally in the price to US$90 is sustainable and expects
the price to stabilise around these levels through 2008. DYL is setting
itself up to be a supplier of this strategic metal through
aggressive and successful exploration and project acquisition
programmes.
EXPLORATION UPDATE (February 2008)
Namibia
-
Tubas Project: JORC Code Inferred
Mineral Resource of 77.3 million tonne at 0.023% (238 ppm)
U3O8
at a cut-off grade of 100 ppm U3O8
for 17,600 tonne or 38.8 million pounds of contained U3O8.
-
Alaskite Discovery: The field teams
have discovered, geologically mapped, radiometrically
surveyed and sampled a previously unknown alaskite
occurrence (a specific granite type that hosts the Rossing
uranium mine and Bannerman's and Extract's uranium
mineralisation to the north and northeast). The alaskite
outcrop and sub-outcrop contains extensive secondary
uranium mineralisation in its weathered crust present as
abundant visual carnotite.
Composite samples assayed to date have
returned values of between 2,000 and 4,500 ppm U3O8. At
present the mapped area covers about 4 km2
and is being extended. Reconnaissance RC drilling of this
area to 150 m depths has commenced.
The discovery area is mostly sand covered
and is presently being mapped. Although the new prospect is
at an early stage of assessment, three 150 m deep angled RC
drill holes were drilled to test the depth potential of the
mineralisation. There is minor copper staining present in
the dump material.
Preliminary assay results for holes AM1, AM2
and AM3 indicate significant widths and grade of uranium
mineralisation associated with the magnetite units at depth
(ASX 22 January 2008).
Preliminary Uranium Assays
| - Hole AM1 |
26m at 217
ppm U3O8
from 6m
18 m at 174 ppm U3O8
from 64 m
2 m at 455 ppm U3O8
from 140 m |
| - Hole AM 2 |
16 m at 286
ppm U3O8
from 41 m
6 m at 237 ppm U3O8
from 67 m
10 m at 348 ppm U3O8
from 98 m |
| - Hole AM 3 |
37m at 260
ppm U3O8
from 48m
4m at 715 ppm U3O8
from 112m |
A diamond drill is now on site drilling hole
AMD1 as a twin hole to RC hole AM3.
-
Geochemical samples from helicopter
supported ground checking of airborne radiometric and
magnetic anomalies have returned high grade uranium assays
(up to 32,935 ppm or 3.29% U3O8)
from new mineralised areas on all four Exclusive
Prospecting Licences (EPLs). (ASX 23 January 2008)
-
Drill Rigs: Acceleration of JORC
Code resource estimates is to be facilitated by bringing
in an additional 4 rigs drilling a
scheduled 15,000 metres per month in total.
There are currently 3 RC and 1 diamond drill rig on site,
with a further two RC rigs on site in mid February.
-
Resource Target: Now 50,000 tonne
(110 million pounds) of contained U3O8
within known areas of mineralisation.
Australia
- Hole DCQRC-006 22 m at 575 ppm U3O8
from 22 m
- Hole DCQRC-006 13 m at 723 ppm U3O8
from 75 m
The entire intercept bulks out to 66 m at
373 ppm U3O8
from 22 m and includes 4 m at 1,863 ppm U3O8
from 78 m.
- Hole DQRC-0032 50 m at 400 ppm U3O8
from 1 m
- Hole DQRC-0033 69 m at 467 ppm U3O8
from 8 m
- Hole DQRC-0041 23 m at 409 ppm U3O8
from 108 m
- Hole DQRC-0047 37 m at 538 ppm U3O8
from 41 m
The Company consider that these results
indicate that Queens Gift has the potential to host an
economically viable uranium deposit.
Most significant wide intercepts include:
- Hole DMRC-0008 32 m at 625 ppm U3O8
from 3 m
- Hole DMRC-0009 25 m at 654 ppm U3O8
from 14 m
- Hole DMRC-0018 46 m at 352 ppm U3O8
from 6 m
CORPORATE
Corporate Outlook
With over A$62 million in cash and liquid
assets DYL is well positioned for growth through
exploration success in 2008.
-
With the admission of Uranio Limited
(Uranio) to the ASX (29 January 2008) a joint venture has
been formed with Uranio holding 70% and DYL 30% in
the divestment tenements. In the case of the pre-existing
Siccus JV, Uranio will hold 70%, DYL 20% and
Signature Resources retain their 10% holding.
As part of the settlement Uranio issued DYL
with 3,849,379 shares and 3,848,379 options plus $500,000 in
cash. A further $1 million in cash is due by 29 January
2009.